{"id":227,"date":"2022-02-06T09:44:00","date_gmt":"2022-02-06T09:44:00","guid":{"rendered":"https:\/\/iqeq1.local:33771\/?p=227"},"modified":"2023-06-07T09:39:41","modified_gmt":"2023-06-07T09:39:41","slug":"how-and-why-use-ptcs-your-us-family-office-structure","status":"publish","type":"post","link":"https:\/\/iqeq.com\/insights\/how-and-why-use-ptcs-your-us-family-office-structure\/","title":{"rendered":"How and why to use PTCs for your U.S. family office structure"},"content":{"rendered":"
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Private trust companies (PTCs) are powerful tools for maximizing family wealth, streamlining governance and optimizing succession planning. We recently authored a guide including detailed information about PTCs on a global scale (download that guide for free here<\/a>), but choosing a U.S. situs carries enough unique considerations to merit a separate discussion.<\/strong><\/p>\n

What is a PTC?<\/h2>\n

A private trust company (PTC) is an organization that acts as trustee of one or more trusts established for a single family, including branches. As its name implies, a PTC is privately owned and run, and therefore does not provide trustee services to the public.<\/p>\n

Using a PTC as trustee enables family members to be directly involved in decision-making processes, either by sitting on the board of the PTC or on advisory committees. As such, a PTC becomes more than a bespoke trustee service; it can also serve as a family governance tool and legal structure.<\/p>\n

In practice, PTCs are usually administered by professional trustees to ensure compliance and help navigate family disputes. The shares of a PTC are usually owned by a dedicated purpose trust (rather than through direct family ownership), as the goals are most often continuity of ownership of the trustee and a degree of confidentiality.<\/p>\n

Why are PTCs so popular in the U.S.?<\/h2>\n

PTCs are gaining popularity against the traditional trustee model because they:<\/p>\n